The Bank of Greece is going to present its plan for the establishment of an Asset Management Company (bad bank) by the end of September. The bad bank will operate in addition to the Hercules securitisation programme; it will undertake the disposal of a part of NPLs, while its goal is to also address the problem of the deferred tax claim of the banks.
The BoG considers it imperative to support banks in their effort to meet the current challenges (mainly digital technology and financing of dynamic sectors and companies) and this requires, as a matter of priority, the immediate tackling of the NPL problem and deferred tax assets ( DTC).
The BoG has been insisting on the bad bank plan for the last two years. This time, the plan has been assigned to Rothschild, Boston Consulting and Deloitte. Rothschild has investigated the terms and conditions (perimeter, pricing) under which the transfer / securitization of NPEs by banks could take place. Boston Consulting is adapting the plan to the regulatory and legislative framework, in order to comply with European and national rules, and Deloitte will study the tax issues.
The BoG prefers to call the new scheme an AMC rather than a bad bank, since, as it claims, this plan will give time to the banks to absorb the losses from the transfer of the NPL. It will be able to deal with all loans that are overdue for more than 90 days, it will be supported the servicers and will operate on the condition that all banks have already entered the Hercules SPV.
Original Source: Capital.gr
Adaptation/Summary: Kiki Athanasiadis